American vs European options An American option is worth at least as much as the corresponding European option

Types of options A call is an option to buy A put is an option to sell A European option can be exercised only at the end of its life An American option can be exercised at any time

Nature of Swaps A swap is an agreement to exchange cash flows at specified future times according to certain specified rules Options, Futures, and Other Derivatives, 5th edition 2002 by John C. Hull

Types of Rates Treasury rates LIBOR rates Repo rates Options, Futures, and Other Derivatives, 5th edition@ 2002 by John C. Hull

Long Short Hedges A long futures hedge is appropriate when you know you will purchase an asset in the future and want to lock in the price A short futures hedge is appropriate when you know you will sell an asset in the future want to lock in the price

Consumption vs Investment Assets Investment assets are assets held by significant numbers of people purely for investment purposes (Examples: gold, silver) Consumption assets are assets held primarily for consumption(Examples: copper, oil)

Futures Contracts Available on a wide range of underlying assets · Exchange traded · Specifications need to be defined: What can be delivered, - Where it can be delivered, When it can be delivered Settled daily Options, Futures, and Other Derivatives,5 5th edition2002 by John.hull

The nature of derivatives a derivative is an instrument whose value depends on the values of other more basic underlying variables Options, Futures, and Other Derivatives, 5th edition C 2002 by John C. Hull

30.2 Big Losses by Financial Institutions Allied Irish Bank($700 million) Barings($1 billion) Chemical Bank($33 million) Daiwa ($1 billion) Kidder Peabody ($350 million) LTCM ($4 billion) Midland Bank ($500 million) National Bank ($130 million) Sumitomo ($2 billion)

一、国际工程承包合同的地位 在招标文件和与承包商签订的合同中,合同条件是最 核心、最重要的内容。合同条件既是投标人报价的基础 ,也是合同签订后双方履行合同最重要的依据